Indonesia Market Summaries 17 May 2013

Bank BNI is reviewing investment in Bahana

The management is studying two options to acquire Bahana Pembinaan Usaha Indonesia (BPUI), which is owned by the Ministry of SOE. First is 100% direct investment which will take a long process as it needs the parliament approval. The second is through additional share issuance in which BNI will own 40% of BPUI while the government will still own 60%. This does not need the parliament approval and earlier the bank mentioned to pay the shares using part of their Rp17tr recapitalization bonds. (Kontan)

Investment to ease in 2Q13

The chairman of the Coordinating Investment Board Chatib Basri anticipated easing investment in 2Q13 affected by declining capital goods imports since 1Q13. Though so, the FDI to GDP ratio is expected to increase to above  5% from 3% in 1Q13 and 1.7% in 1Q12 (Investor Daily)

Subsidized fuel price hike compensation program set at IDR 20 trillion

The number is registered in the 2013 Revised State Budget Proposal (RAPBN-P 2013). A big chunk of the amount is allocated to the temporary direct aid (BLSM), reaching IDR 13 to 14 trillion according to the Coordinating Minister of Citizen’s Welfare,  while the rest to enhance existing social programs already budgeted this year. The government reportedly has submitted the budget proposal to the parliament in Tuesday (5 May13) and the related discussion is expected to be done in a month (Kontan)

for Indonesia Market Summaries 17 May 2013